Sales agent trying to claim a direct order.

n.d.os

We went to a trade show in France where our North Italian sales rep was there for half the time. A store from South Italy, where we don’t have an agent, ordered directly from us on the first day. We settled the terms and that was it.

But after the show, our North Italian sales rep sent me a photo of the order from our book. This was a bit sneaky and I was disappointed in him for prying. He asked me if we had invoiced them and kept mentioning the order, saying that “the store contacted him” and if we had shipped it etc. I think he either doesn’t know what’s happening between us and the store or he contacted them himself to get the order.

To be clear, this is not his order and I don’t want to argue with him or tell him to stop. He may feel like we’re taking his business and he deserves a commission. I suspect he’s trying to make us think he’s in charge of the communication with the store, who haven’t reached out to us at this time.

Today he said the store are impatient for their order and will cancel it if we don’t send it right away. Maybe he talked to them since he knows the owner and they made a deal to only take it through him.

I'm not too pushed if they cancel the order. It’s a small order from a store and the store isn't great. I want to stay on good terms with the sales rep because I like him, he’s passionate about the brand but he can be pushy sometimes and I feel like he's being very manipulative and creating an awkwardness where I can't just say to him, "please back off."

I would appreciate any advice.

Gloomtastic!

If he didn’t make the sale, he’s definitely managing the order.

Offer him 25% commission on this order and 100% of future orders from this customer.

Mick Tator

 

Well, he’s an Italian!

I disagree (yet again!😊!) with Gloomster. It might simply be a small order but it is indicative of a greater problem that will not go away and can only grow. It boils down to three issues. (1) What does your contract with him say? (2) Trust, and (3) man-management / do you need to retain him?

The agent’s contract should clearly state what area he can cover. If, as you state, his area is N. Italy, he should keep out of S. Italy, that’s a basic rule for governing territories. (FWIW I’ve fired people for crossing territorial boundaries, they are not worth the trouble they cause. Equally when there is a once-off genuine sale e.g. buyer had a link to agent, I’ve sanctioned a commission share.) Aside from the 1,500 km distance and different cultures, generally Southern Italians don’t like Northerners and vice-a-versa so without much more info on your operation I’d not be overly keen on expanding his territory.

(2) Trust – this is a key issue for me. If the guy went at your order book and photographed the order, it is a huge breach of trust. It cannot go uncorrected and if you are sure it was your book (and not the customer’s counterfoil of the order) he needs to be reprimanded. As your agent he has considerable power to get you into trouble so he must be controlled/told who is in charge. The degree of severity depends on (3) below.

(3) Man-management. You, TBH, show a certain amount of weakness in this comment “I like him, he’s passionate about the brand but he can be pushy sometimes and I feel like he's being very manipulative and creating an awkwardness where I can't just say to him, "please back off."    He is a saleman, (you do not state how effective he is) so he is used to manipulating people, getting his own way, being knocked-back/rejected and then able to bounce back. You have to realise this and take control by managing him effectively rather than the other way around.

From what you’ve written you appear to want to retain him, so in your position I would tell him that you need to meet, (face to face), then let him know that your staff on your stand at a trade show in France took an order from a company outside his territory. It has nothing to do with him, he did not tell you about the potential sale until after the event, so end of, back off. Additionally, poking into your order book is a considerable breach of trust and a big disappointment. I doubt he would take the hump and go, but if he does you've saved yourself considerable future trouble.

If you are very keen on him, want to retain him and are considering taking on an agent for S Italy you might think about making the new guy a sub-agent of the existing guy, operate on a profit share. That way you would have only one to manage.

Good luck with it.